U.S. firm hopes to build Mongolian gambling oasis

Published 10:00 pm, Thursday, April 27, 2006

SHANGHAI, China -- Its proximity to a desert is about the only thing the Mongolian border town Zamyn Uud has in common with the gambling Mecca of Las Vegas.

But Mongolian planners and American entrepreneurs hope the tiny town where livestock outnumber people on the main rail link between China and Russia will one day become a major gambling and resort destination.

Thursday, the government of Mongolia signed a contract that will put a little-known U.S. real estate company, Winwheel Bullion LLC, in charge of building a casino complex, with hotels, a convention center, shopping malls, banks and financial institutions -- and a modern airport to take visitors the vast distances needed to reach Zamyn Uud.

Mongolia's ministers of trade and finance and its central bank governor were on hand for the signing ceremony at a posh Washington hotel, timed to mark the 800th anniversary of the coronation of Genghis Khan.

"Genghis Khan ruled so much of the world for 150 years," Winwheel Chairman Kim Sun-jin said in a phone interview. "This is a good chance to bring down the Great Wall and for China and Mongolia to be commercially integrated."

"The timing is right, too," Kim said.

Winwheel and the Mongolian side called the contract an important milestone as Mongolia continues its transition to a free-market economy. So far, they have provided no information about financial arrangements for the zone.

It wasn't immediately clear where Winwheel is based, although its Web address -- which said "under reconstruction" -- is registered in Mount Vernon, Mo.

Zamyn Uud, population 8,400 plus 10,372 sheep, cattle and other livestock, whose name in Mongolian means "gateway," is no Las Vegas.

The dusty railway depot, about 350 miles northwest of Beijing, lacks the artesian springs that helped lure settlers to the Nevada oasis that has grown into a glittering worldwide tourism attraction.

But planners say they've found underground water to overcome the current scarcity and that they've found partners to build up the town's electrical supply.

Winwheel's Kim said he was fascinated by the Mongolian people and their history. With the help of the consortium of contractors and other companies, he said the Mongolians can build a commercial center linking Mongolia's impoverished, resource-based economy with the dynamic Chinese economy.

The success of his plan depends on attracting visitors from China, where gambling is a passion but mostly outlawed by authorities. Thriving casinos in border towns in Myanmar (also known as Burma), Vietnam and even North Korea attest to the potential market among Chinese itching to place their bets.

Mongolia would like to share in the wealth generated by the Chinese city of Erlian, a trading post of 100,000 people just across the border.

"On the other side of the border, Erlian prospered a lot because we Mongolians buy a lot from there. But Zamyn Uud is still the same few buildings almost covered with sand," said S. Batkhuu, a trader in the Mongolian capital, Ulan Bator.